Mortgage rates are at rock bottom within the range of 6.75%- 7%, whereas 5 years back in 2016 the range was 9.25% - 9.50%. Due to excess inventory available buyers are having edge over sellers. Thus better deals can be fetched. Is this the only factor to make a buying decision?

Buying a home should never be a short term objective but a long term financial goal. The dream of “Home Ownership” still has lots of emotional values attached to it and it still remains the core investment agenda of every family.

Ever since the economy went into a lockdown following the Covid 19 pandemic, everyone thought it will bring a different level of revision in real estate market. But the strengthened immune system helped the market to bounce back. It taught us “work from Home” a new corporate breakthrough. This have moved many corporate employees working for big companies in big cities to their small home towns. This gave a new breather to the real estate market in these smaller towns where customers are purchasing a new home and reinventing themselves.

Back in the heyday when housing was hot, property prices were going north, it was an exciting time to buy and people multiplied their investments during that time. But the bubble burst, the market cooled and the housing went from short term speculation to sensible buying.

With the implication of RERA, this sector has already seen a lot of transformations. The regulatory and policy measures have helped revive faith in this sector by bringing in transparency to an actual home buyer. The mesmerizing, tempting advertisements on Home investments, built up areas, construction quality, amenities, date of possession are being watched upon which is further bringing in quick buying decisions.

Banks are having abundant funds to park, and Home loans are the best bet. While home loan interest rates play a determining role in which financial institution you choose, but there are a lot of other factors related technology and customer service which are inevitable.

PMAY (Pradhan Mantri Awas Yojana) is giving an additional discount and prompting all first time home buyers to have a house in spite of already having the one from our parents. Economically weaker section (EWS),Low Income Group (LIG) and Middle Income Group (MIG) all are beneficiaries and would be eligible for interest subsidy of 2.30% to 2.67% depending on the category (of eligible income) on purchase / construction of a house.

A home brings in emotional satisfaction, social eminence and financial obligation with it. So make the right choices for yourself so that you can look good, eat well, stay at a nice place and plan your retirement.

The author, Gaurav Mahajan is a banker by profession and can be contacted at mahajang@rediffmail.com